Thread: You guys are not going to believe this. Now they don't want the bailout

Well wallstreet got what it wished for, but now they don't want it. To bad that's karma. Apparently some of the banks wont be participating in the bailout to save the world because they don't like having to give up there golden parachutes. An goverment oversigth would be burdensom with all those pesky law's and accountability. They will just buckle down like everyone else and get out of dedt. Can you believe this stuff.

Now Wall Street may shun $700bn bail-out | Business | The Observer

Originally Posted by jimmyseymour

Well wallstreet got what it wished for, but now they don't want it. To bad that's karma. Apparently some of the banks wont be participating in the bailout to save the world because they don't like having to give up there golden parachutes. An goverment oversigth would be burdensom with all those pesky law's and accountability. They will just buckle down like everyone else and get out of dedt. Can you believe this stuff.

Now Wall Street may shun $700bn bail-out | Business | The Observer

I kind of wondered if something like this might happen. I told my congressman fine, bail the idiots out, but make them pay for it with their bonuses. I thought maybe some of the CEOs would think wait a minute, maybe we can figure this out for ourselves.

Think of it as a market solution.

j

This should be a decision left to the Board of Directors for the various companies, and out of the hands of the CEOs.

Matt

Sounds to me like an admission of guilt....and a desire to continue on.

Now they need to lower the bailout, but put the oversight in place anyway and strengthen the regulations at the SEC and close the loopholes for these CEOs to get off scot-free...that should tighten some sphincters.

Read about this earlier this morning. Looks like it was pushed through too hard, and you know what can happen when you push too hard.....
The bailout bill also gave the Internal Revenue Service new authority to conduct undercover operations. It would immunize the IRS from a pile of federal laws, including permitting IRS agents to run businesses for an extended sting operation, to open their own personal bank accounts with U.S. tax dollars, and so on. (Think IRS agents posing as accountants or tax preparers and saying, "I'm not sure if that deduction is entirely legal, but it'll save you $1,000. Want to take it?") That section had expired as of January 1, 2008, and would now be renewed. Welcome to bizzarro world where all things are done to make things worse and reality is stranger than science fiction. Last week congress passed the Federal Budget and the 850 billion bailout. Added together it comes to over 1.4 trillion. No one talks about the real debt...... seems today that OJ was headlining. It's not time for a sigh of relief yet folks, the fat lady ain't sang yet.

Originally Posted by mhailey

This should be a decision left to the Board of Directors for the various companies, and out of the hands of the CEOs.

Matt

It will be, since the CEO can be kicked out on a whim of the board.

Well, that's a good thing. May be fewer participating banks will translate to less money spent. 700 billion is an upper limit and doesn't need to be spent. Of course the plan by itself is not a problem, as usual the devil is in the details. The big question to me is what price will the government be paying for these securities. Too low should actually be a great long term investment, but then that wouldn't be helpful to the banks. For them the best is that the gov buys it at the value on their books, so they take no loss whatsoever.

We saw last week that both Goldman Sachs and Meryl Lynch became bank holdings. It looks to me that it was just a preemptive step to subject themselves to current regulations and minimize the risk of submitting in near future to whatever new regulations the government may implement for investment banks.

And for those of you playing at home... though it's not widely reported, Bernake gave the banks 900 billion yesterday afternoon as a line of credit. So apparently the 733B is for payment on interest of bad debt, and the new 900B is for principle. And the hits just keep on coming. Now, back to the music...